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&lt;p style="margin: 0in 0in 0pt 0.25in;"&gt;&lt;font style="font-size: 10pt;" class="_mt" size="2"&gt;Ferrellgas Partners, L.P. ("Ferrellgas Partners") is a publicly traded limited partnership, owning an approximate 99% limited partner interest in Ferrellgas, L.P. (the "operating partnership"). Ferrellgas Partners and the operating partnership are collectively referred to as "Ferrellgas." Ferrellgas,&amp;nbsp;Inc. (the "general partner"), a wholly-owned subsidiary of Ferrell Companies,&amp;nbsp;Inc. ("Ferrell Companies"), has retained a 1% general partner interest in Ferrellgas Partners and also holds an approximate 1% general partner interest in the operating partnership, representing an effective 2% general partner interest in Ferrellgas on a combined basis. As general partner, it performs all management functions required by Ferrellgas. At October&amp;nbsp;31, 2010, Ferrell Companies beneficially owned 20.3 million of Ferrellgas Partners' outstanding common units.&lt;/font&gt;&lt;/p&gt;
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&lt;p style="margin: 0in 0in 0pt 0.25in;"&gt;&lt;font style="font-size: 10pt;" class="_mt" size="2"&gt;The condensed consolidated financial statements of Ferrellgas reflect all adjustments that are, in the opinion of management, necessary for a fair presentation of the interim periods presented. All adjustments to the condensed consolidated financial statements were of a normal, recurring nature. The information included in this Quarterly Report on Form&amp;nbsp;10-Q should be read in conjunction with (i)&amp;nbsp;the section entitled "Management's Discussion and Analysis of Financial Condition and Results of Operations" and (ii)&amp;nbsp;the consolidated financial statements and accompanying notes, each as set forth in Ferrellgas' Annual Report on Form&amp;nbsp;10-K for fiscal 2010.&lt;/font&gt;&lt;/p&gt;&lt;/div&gt; &lt;/div&gt;</NonNumbericText><NonNumericTextHeader /><FootnoteIndexer /><CurrencyCode /><CurrencySymbol /><IsIndependantCurrency>false</IsIndependantCurrency><ShowCurrencySymbol>false</ShowCurrencySymbol><DisplayDateInUSFormat>false</DisplayDateInUSFormat><hasSegments>false</hasSegments><hasScenarios>false</hasScenarios></Cell></Cells><OriginalInstanceReportColumns /><Unit>Other</Unit><ElementDataType>us-types:textBlockItemType</ElementDataType><SimpleDataType>string</SimpleDataType><ElementDefenition>Describes an entity's accounting policy regarding (1) the principles it follows in consolidating or combining the separate financial statements, including the principles followed in determining the inclusion or exclusion of subsidiaries or other entities in the consolidated or combined financial statements and (2) its treatment of interests (for example common stock, a partnership interest or other means of exerting influence) in other entities, for example consolidation or use of the equity or cost methods of accounting. An entity also may describe its accounting treatment for intercompany accounts and transactions, noncontrolling interest, and the income statement treatment in consolidation for issuances of stock by a subsidiary.</ElementDefenition><ElementReferences>Reference 1: http://www.xbrl.org/2003/role/presentationRef
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&lt;p style="margin: 0in 0in 0pt 0.25in;"&gt;&lt;font style="font-size: 10pt;" class="_mt" size="2"&gt;Ferrellgas Partners Finance Corp. (the "Finance Corp."), a Delaware corporation, was formed on March&amp;nbsp;28, 1996, and is a wholly-owned subsidiary of Ferrellgas Partners, L.P (the "Partnership").&lt;/font&gt;&lt;/p&gt;
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&lt;p style="margin: 0in 0in 0pt 0.25in;"&gt;&lt;font style="font-size: 10pt;" class="_mt" size="2"&gt;The Finance Corp. has nominal assets, does not conduct any operations, has no employees and serves as co-issuer and co-obligor for debt securities of the Partnership.&lt;/font&gt;&lt;/p&gt;&lt;/div&gt; &lt;/div&gt;</NonNumbericText><NonNumericTextHeader /><FootnoteIndexer /><CurrencyCode /><CurrencySymbol /><IsIndependantCurrency>false</IsIndependantCurrency><ShowCurrencySymbol>false</ShowCurrencySymbol><DisplayDateInUSFormat>false</DisplayDateInUSFormat><hasSegments>false</hasSegments><hasScenarios>false</hasScenarios></Cell></Cells><OriginalInstanceReportColumns /><Unit>Other</Unit><ElementDataType>us-types:textBlockItemType</ElementDataType><SimpleDataType>string</SimpleDataType><ElementDefenition>Describes an entity's accounting policy regarding (1) the principles it follows in consolidating or combining the separate financial statements, including the principles followed in determining the inclusion or exclusion of subsidiaries or other entities in the consolidated or combined financial statements and (2) its treatment of interests (for example common stock, a partnership interest or other means of exerting influence) in other entities, for example consolidation or use of the equity or cost methods of accounting. An entity also may describe its accounting treatment for intercompany accounts and transactions, noncontrolling interest, and the income statement treatment in consolidation for issuances of stock by a subsidiary.</ElementDefenition><ElementReferences>Reference 1: http://www.xbrl.org/2003/role/presentationRef
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&lt;p style="margin: 0in 0in 0pt 0.25in;"&gt;&lt;font style="font-size: 10pt;" class="_mt" size="2"&gt;Ferrellgas, L.P. is a limited partnership that owns and operates propane distribution and related assets. Ferrellgas Partners, L.P. ("Ferrellgas Partners"), a publicly traded limited partnership, owns an approximate 99% limited partner interest in, and consolidates, Ferrellgas, L.P. Ferrellgas,&amp;nbsp;Inc. (the "general partner"), a wholly-owned subsidiary of Ferrell Companies,&amp;nbsp;Inc. ("Ferrell Companies"), holds an approximate 1% general partner interest in Ferrellgas, L.P. and performs all management functions required by Ferrellgas, L.P.&lt;/font&gt;&lt;/p&gt;
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&lt;p style="margin: 0in 0in 0pt 0.25in;"&gt;&lt;font style="font-size: 10pt;" class="_mt" size="2"&gt;Ferrellgas, L.P. owns a 100% equity interest in Ferrellgas Finance Corp., whose only business activity is to act as the co-issuer and co-obligor of any debt issued by Ferrellgas, L.P.&lt;/font&gt;&lt;/p&gt;
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